24 PA R T I Introduction FINANCIAL NEWS Money Rates The Globe and Mail and the National Post publish daily a listing of interest rates on many different financial instruments In the National Post: Financial Post, this listing can be found in the Bond Yields and Rates column The interest rates in the Bond Yields and Rates column that are discussed most frequently in the media are as follows: Bank rate: The interest rate charged by the Bank of Canada on loans made to members of the Canadian Payments Association Overnight money market (financing) rate: A measure of the collateralized overnight rate compiled by the Bank of Canada Prime rate: The base interest rate on corpo- rate bank loans, an indicator of the cost of business borrowing from banks Treasury bill rates: The interest rates on Government of Canada treasury bills, an indicator of general interest rate movements Selected U.S interest rates: Selected U.S interest rates such as treasury bill rates, commercial paper rates, the discount rate, the prime rate, and the federal funds rate These are indicators of general interest rate movements in the United States London interbank offer rate (or Libor): The British Bankers Association average of interbank rates for dollar deposits in the London market BOND YIELDS AND RATES U.S YIELDS CANADIAN YIELDS Latest Prev day T-Bills 1-month 0.30 0.27 0.49 3-month 0.40 0.43 0.60 6-month 0.49 0.49 0.65 1-year 0.55 0.57 0.75 Bonds 2-year 0.95 0.93 1.14 5-year 1.85 1.81 2.05 7-year 2.07 2.03 2.25 10-year 2.93 2.91 3.12 30-year 3.61 3.55 3.70 Banker s acceptances (ask prices) 1-month 0.62 0.65 0.75 3-month 0.61 0.62 0.75 6-month 0.80 0.85 1.10 3-mth forward rate agreement 3-month 0.51 0.49 0.65 6-month 0.45 0.46 0.70 9-month 0.56 0.54 0.86 0.53 0.72 0.72 0.80 1.14 1.93 2.36 3.04 3.76 0.95 0.90 1.30 0.63 0.59 0.71 INTERNATIONAL Latest Prev day Wk Wks ago ago T-Bills 1-month 3-month 6-month 0.05 0.19 0.38 0.08 0.19 0.37 0.13 0.24 0.43 0.21 0.28 0.42 Bonds 2-year 5-year 0.94 1.88 0.88 1.79 0.97 1.99 0.99 1.96 10-year 2.53 2.47 2.68 30-year 2.87 2.81 3.02 Commercial paper 1-month 0.24 0.21 0.27 3-month 0.35 0.34 0.51 6-month 1.48 1.58 1.58 3-mth forward rate agreement 3-month 1.43 1.32 1.28 6-month 1.44 1.36 1.34 9-month 1.57 1.49 1.50 2.98 3.69 Wk Wks ago ago 0.34 0.43 1.28 1.07 1.15 1.35 Prev Wk Wks Latest day ago ago Euro-deposit rates (bid) US$ 1-month 0.47 0.45 0.43 1.20 3-month 1.45 1.24 1.21 1.13 6-month 1.85 1.69 1.64 1.56 C$ 3-month 1.21 1.21 1.35 1.52 euro 3-month 1.70 1.66 1.49 1.99 Yen 3-month 0.90 0.32 0.78 0.65 3-month 1.71 1.61 1.78 1.69 London interbank offer rate US$ US$ 1-month n.a 0.53 0.50 0.45 3-month n.a 1.28 1.26 1.24 6-month n.a 1.83 1.80 1.75 BANK RATES Canada United States Bank of Canada 0.75 Discount 0.50 Overnight Money Prime 3.25 Market Financing 0.30 Federal Funds 0.22 Prime 2.50 Call Loan Average 0.45 Source: National Post: Financial Post, March 7, 2009, p FP13 All rights reserved Republication or redistribution of Thomson Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters Thomson Reuters and its logo are registered trademarks or trademarks of the Thomson Reuters group of companies around the world Thomson Reuters 2009 Thomson Reuters journalists are subject to an Editorial Handbook, which requires fair presentation and disclosure of relevant interests deposits at the Bank of Canada It can then borrow these balances from another bank with excess settlement balances The overnight market is very sensitive to the credit needs of the deposit-taking institutions, so the interest rate on overnight loans, called the overnight interest rate, is a closely watched barometer of the tightness of credit market conditions